Nancy Pelosi and Harry Reid block US Automaker bailout

In a sickening twist, the two Congressional leaders blocked any bailout efforts until the Big Three submit their plans for the future and outline how they will use the money. You wanna talk about grandstanding, Pelosi is acting like she is the queen bee who is gonna force the automakers into submission. I feel like she is treating the Big Three like they are little children who need to write sentences until they learn their lesson. Here is a quote from Pelosi (whom I dislike more each day):

"Until they show us a plan, we can't show them the money."

This from the person who just pushed through the unprecedented 700 billion dollar banking bailout. So our government will not LOAN 25 billion to our auto companies but will readily SPEND 700 billion on evil, reckless banking institutions? It reminds me of a bible verse that describes hypocrites who can swallow a camel but strain at a gnat.

I am afraid if I were the CEO of GM, Ford or Chrysler, I would tell Nancy Pelosi and Harry Reid to stick it where the sun don't shine. This, of course, explains why I am not!

Monday's US Auto bailout news

As expected there is plenty to report from the day.

First off, Congress did not make much headway in putting forth a bailout solution. They are still trying to carve out aid from the 700 billion dollar TARP package and the White House still wants to use the 25 billion dollar auto "re-tool" allotment. In typical Washington fashion, Majority Leader Harry Reid, D-Nev., said he would hold a test vote this week on a broad economic aid plan that includes everything but the kitchen sink. Then he admits that this will probably fail and so his next effort would be to seek a vote on the auto industry bailout with unemployment benefits package. He has until Friday, so I suppose he knows what he is doing.

Next up, General Motors will delay incentive payments to dealers next week in an effort to save cash. This is an interesting announcement that can save the company about 300 million dollars over the course of the next two weeks. While this may help GM now, it causes the dealers a delay of up to two weeks to get their cash. Apparently, this is OK with the dealers, but what choice do they have?

Here is my last update for today. Senator Bill Nelson, D-Fla., said that automakers who receive federal aid should double the fuel economy of their fleets by 2020. Now we're talkin'! I like how this Senator thinks but I am sure that no such strings will be attached to a bailout. Nelson goes on to say that a fleetwide average of 35 mpg by 2020 is not enough and that he sees no point in handing out more money to automakers that resist higher mpg vehicles.

Whew. Hang on folks!

US Lawmakers at it again!

From the Wall Street Journal online:

"House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid sent a letter to Treasury Secretary Henry Paulson urging him to assist the Big Three auto makers by considering broadening the $700 billion Troubled Asset Relief Program to help the troubled (auto) industry."

Hmmm. I didn't know the Treasury Secretary had such broad powers, did you? The more I learn of Nancy Pelosi's legislative prowess (or glaring lack thereof), the less I like her. This is yet another bone-headed initiative spearheaded by Pelosi. Lest I digress further into oblivion, let's shift gears.

Where do the handout's end? Exacty how many billions of dollars is enough to assuage the greedy, insatiable executives of the Big Three US automakers? The recent 25 billion dollar "loan" is apparently not even enough to qualify as a tiny Band-aid. I have heard rumours of a 50 billion dollar package recently and now this announcement of unknown proportions gives me tremendous pause. Does NASA even get this much money?

Apparently, we are going to bail out these worthless companies, who squandered big profits when times were good and the SUV's and trucks rolled off the production line, but why can't we attach some strings to these handouts? Here are three ideas I have:

1. All upper management is relieved of duties within 30 days.
2. Fleet mpg AVERAGES must be 35 or greater.
3. Alternative fuel vehicles must be offered and each automaker must have a CNG, PHEV AND EV model for sale.

I realize that we are in some financial hard times at the moment, but I truly believe that foreign oil dependency is killing us. We must turn this ship around and stop the madness of driving around in gas guzzling vehicles while importing foreign oil.